Supply - Amount of a good or service that a producer is willing to sell at each particular price
How much are you willing to pay?. Price is defined as the value placed on the goods or services...
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Transcript of How much are you willing to pay?. Price is defined as the value placed on the goods or services...
The cost of providing the
product or service The profit that companies hope
to make Demand for the product Supply of the product What is the Competition
charging?
Factors Affecting Pricing
Movie Theatre
http://www.howstuffworks.com/movie-distribution2.htm
A pricing strategy is defined
as: A plan which determines the
best (at the time of making) pricing decision.
Pricing Strategy
Is the measure of the
responsiveness of demand and supply of a good or service to an increase or decrease in its price.
Elasticity
Competitors
The availability of substitute sports or entertainment product
How easily can we be replaced?
Accessibility to the consumer
Three main pricing strategies:1. Market skimming
2. Penetration pricing
3. Competitive pricing
Pricing Strategies
Think! Pair! Share!
In pairs, brainstorm what you think each pricing strategy means.
Come up with examples of sports or entertainment products or companies that use these strategies
Join another pair, and discuss your answers As a class each group of 4 will present their
findings
Pricing Strategies
Setting a low price for a new product to attract
many customers to try the product and to obtain a large share of the market in a short time
Example: Nintendo consciously chose a penetration strategy when it introduced its GameCube video game console. GameCube was priced at substantially less than Microsoft’s Xbox and Sony’s PlayStation 2 consoles.
Penetration